October 1st

Let’s have a look on FMCG Industry and its Trends by Kiwi Foods

FMCG stands for fast-moving consumer goods. This industry has risen to around 10 lakh crore of product sales and is the fourth largest sector in the Indian economy. If we talk about consumption and value, then FMCG saw the greatest rise in the last few years. During these years, the consumption crossed 60 million tons, which was a significant change. This figure indicates that there was a growth of approx. 7 % as compared to previous years. In terms of value, this sector reflected a growth of 13.5 %, which was the highest in the last few years. 40%-45 % of the sales of the FMCG market comes from frugal areas. There are various trends in the industry that will be the driving force. Some of them are described as follows:-

 

  • Innovation:- When we talk about innovation in FMCG, then producing and delivering healthy products to the market in terms of organic food, shampoo and hair oil has been the major results of innovation. Packaging has also undergone many major changes during the last few years, in terms of ensuring to pack more and more products in non-plastic packaging materials. These changes have helped the industry to drive more consumer attention towards itself.

 

  • Product Premiumisation:- This has been a major change in the FMCG industry in the last few years. If we talk about biscuits, there were very few limited flavours available before, however, now there are various high end and premium ranges of cookies introduced in the market. Similarly, all the other categories such as hair care, skincare, etc have also gone premium. The major reason for premiumization is due to urbanization.

 

  • Rural Focus:- Major FMCG industries are now focused on creating the demands and meeting hem, in the rural industry. This rural focus parameter is a result of the huge contribution of rural areas in the FMCG industry for the last few years. If we dig down further, we will see that the major growth has been in the food and beverage sector in the rural area. A major reason why rural people have been contributing towards this kind of contribution is due to the various govt schemes and projects introduced by the government. These development plans have led to new ways of growth for the rural folk and hence has increased the need and consumption of FMCG products.

 

 

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